Home Decor Recordings Inc.Statement of Financial Position (partial)June 30, 2020AssetsOperating line of creditLiabilities$(560,000)Current liabilitiesAccounts payableNote payable (6% interest, due January 31, 2021)$264,00080,00010,00050,000Accrued interestLease liabilityLong term liabilitiesBonds payable (due 2028)Notes payable 7% (June 30, 2025)1,910,000150,000Additional information:1) Annual payments on the lease liability are $5,000 per year.2) The accrued interest comprises $3,000 on the 6% note payable and $7,000 on the 7%note payable.3) The 7% note payable value includes the current portion of the loan. The loanprincipal will be repaid in equal amounts over the next five years.4) Bonds have a Face Value of $2,000,000 and interest is paid semi-annually on January1 and July 1, the stated interest rate is 6% and the interest rate on the date of issue was7%. The year-end adjusting entry to recognize interest expense on June 30, 2020 hasnot yet been made.InstructionsPrepare a corrected statement of financial position.

statement of financial position of Home decor recordings Inc are as follows:

Answered: Additional information: 1) Annual…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The interest rate for the first five years of a $95,000 mortgage is 7.2% compounded semiannually. Monthly payments are based on a 25-year amortization. Suppose a $3,000 prepayment is made at the end of the third year. What will be the principal balance at the end of the five-year term?
assume a 30-year $200,000 mortgage loan with an apr of 7%. what is the amount of interest and principal, respectively applied from the first annual fixed payment? a) $7,000; $133.33 b)$133.33; $7,000 c)$14,000; $2,177.28 d) $2,177.28; $14,000
A $96,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 7.1% compounded semi-annually for a six-year term. (a) Compute the size of the monthly payment. (b) Determine the balance at the end of the six-year term. (c) If the mortgage is renewed for a six-year term at 6% compounded semi-annually, what is the size of the monthly payment for the renewal term?
7. An amount of 24,000php is borrowed for 15 years at a rate of 2%. Make an amortization schedule showing the monthly payment, the monthly interest on the outstanding balance, the portion of the payment contributing toward reducing the debt, and the outstanding balance.
An $80,000 loan is amortized by payments of $1950 at the end of every quarter at a rate of 9% compounded quarterly. 1. Construct a partial amortization schedule showing the last 2 payments. 2. Determine the total amount paid to settle the loan. 3. Determine the total principal repaid. 4. Determine the total amount of interest paid.
A floating rate mortgage loan is made for $185,000 for a 30-year period at an initial rate of 12 percent interest. However, the borrower and lender have negotiated a monthly payment of $1,480. Required: a. What will be the loan balance at the end of year 1? b. If the interest rate increases to 13 percent at the end of year 2, how much is the payment plus negative amortization in year 2 and year 5 if the payment remains at $1,480?
A $98,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 6.6% compounded semi-annually for a five-year term. (a) Compute the size of the monthly payment. (b) Determine the balance at the end of the five-year term. (c) If the mortgage is renewed for a five-year term at 8% compounded semi-annually, what is the size of the monthly payment for the renewal term? (a) The size of the monthly payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The balance at the end of the five-year term is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The size of the monthly payment for the renewal term is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Loan payment Determine the equal, annual, end-of-year payment required each year over the life of the loan shown in the following table to repay it fully during the stated term of the loan. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Principal $7,000 Interest rate 13% ... The amount of the equal, annual, end-of-year payment, CF, is $ Term of loan (years) 29 (Round to the nearest cent.)
onsider the following loan. Complete parts (a)-(c) below. n individual borrowed $65,000 at an APR of 5%, which will be paid off with monthly payments of $442 for 19 years. ... a. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount. The amount borrowed is $ 65000, the annual interest rate is 5%, the number of payments per year is 12, the loan term is 19 years, and the payment amount is $ 442. b. How many total payments does the loan require? What is the total amount paid over the full term of the loan? There are 228 payments toward the loan and the total amount paid is $ 100776 c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest? The percentage paid toward the principal is% and the percentage paid for interest is%. (Round to the nearest tenth as needed.)
A mortgage has a principal balance of $385,000, an interest rate of 4.45% compounded semi - annually not in advance. The amortization is 15 years. What is the accelerated bi-weekly payment amount? a) $674.61 b) $1,349.78 c) $1,463.71 d) $ 2,927.41
A mortgage has an interest rate of 200 basis points over the treasury rate of 4%, an amortization period of 30 years and an initial principal balance of $2,000,000. What is the annual debt service? What is the ending principal balance at the end of the tenth year?
Given the following information on a 30-year fully-amortizing mortgage, use the amortization table function on your financial calculator to determine the portion of the monthly payment that goes to principal in 84th payment. Loan amount: $250.000; Annual interest rate: 6%; Monthly payment: $1,498.88.

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